We appreciate your visit to Sunland Company required production for June is 132 000 units To make one unit of finished product three pounds of direct material Z are required. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
The correct option is: (A) The total materials needed for production and adjust for beginning and desired ending inventories giving 426,000 pounds.
- Calculate the total materials needed for production:
Total materials needed = Required production units × Materials per unit
Total materials needed = 132,000 units × 3 pounds/unit
= 396,000 pounds
- Adjust for inventory changes:
Total materials to be purchased = Total materials needed + Desired ending inventory - Beginning inventory
Total materials to be purchased = 396,000 pounds + 235,000 pounds - 205,000 pounds
= 426,000 pounds
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